Quiksilver, Inc. (NYSE:ZQK) Launches Offer to Exchange Senior Notes


Dallas, Texas 10/08/2013 (Financialstrend) – On October 4, Quiksilver, Inc. (NYSE:ZQK) along with its fully owned subsidiary QS Wholesale, Inc has registered the proposed exchange of $225 million principle amount senior notes which are due in 2020 with new senior notes of $225 million which will attract interest of 10 % . The exchange offer is governed by specific terms which the company has highlighted in its prospectus. The terms governing the new notes are identical to the old notes except for the fact that “transfer restrictions, registration rights and special interest provisions” which were provided for the old notes will no longer be applicable to the new notes.

The stock of this $1.14 billion market cap company will have shares outstanding of 167 million. As of close of business on October 7, the shares were priced at $6.83 per share indicating a 4.3% dip over the previous week close. At current valuations, the share price indicates a 16% dip in value over its 52 week high valuation. The stock has risen by 135% over its 52 week low pricing at end of October 7 pricing. The stock in the recent past has been struggling to maintain its market valuation. It is down 2.8% over previous week and is down by 2.98% over the past 90 days.

It is interesting to note that between September 9 and September 18, two well regarded analysts firms came out with BUY recommendations for Quiksilver, Inc. (NYSE:ZQK). Investors would be intrigued to note that the quarter on quarter sales figures for the Apparel clothing chain has actually dipped by 3.2%.  This has translated to an 85% dip in earnings per share over the same period. With insiders of the company owning a substantive 33% of the total stock of 167 million shares outstanding, one needs to look closer to identify the positives which are promoting institutions like BB&T and Credit Suisse to give out BUY options on this stock.